Is price leadership a form of overt or covert collusion?

Price leadership is generally considered a form of overt collusion, as it involves one firm setting prices that other firms in the market follow, thereby influencing the overall pricing strategy within an industry. While it does not require explicit agreements between companies, the public nature of price changes signals an understanding among competitors about maintaining market stability. This behavior can lead to anti-competitive practices and is often scrutinized by regulatory authorities.